Toronto-based IAmGold Corp. said Wednesday it received $34.2 million for the sale of its Mupane Gold Mine in Botswana to Galane Gold Ltd.

IAmGold got $12.5 million in cash, $17.9 million in common shares of Galane and a $3.8 million promissory note, payable over three years at an annual interest rate of 6 percent.

For the equity portion of the consideration, the company received an aggregate of 21,875,000 common shares of Galane representing approximately 48.5 percent of the outstanding shares of Galane. In addition, the IAmGold received warrants in Galane, which if exercised would increase IAmGold's beneficial interest in Galane to 49.9 percent.

Our strategy has been to focus on our core long-life assets that can provide the greatest potential for driving growth in production, said IAmGold CEO Steve Letwin.

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